§ 246 - Approval of authority - Vermont Statutes

§ 246. Approval of authority

No municipality may acquire any interest in an eligible facility or execute any financing document or security document or issue any bonds under this subchapter without the approval of the authority, but nothing herein contained shall prevent a municipality from giving preliminary official approval of a proposed project and the financing thereof. In applying for approval by the authority the municipality shall furnish the authority with any information required, including drafts of the proposed financing document and security document. The authority shall not give its approval unless it determines and incorporates findings in its minutes that:

(1) the project and its proposed financing are feasible;

(2) the establishment and operation of the eligible facility will either

(A) create or preserve employment opportunities directly or indirectly within the state, or

(B) help to protect the state's physical environment, or will accomplish both purposes;

(3) the eligible facility consists of property of a type which may be financed under this subchapter;

(4) the proposed user, or if the user as defined under section 212(23) of this chapter is a lessor, then the tenant of said lessor, has the skills and financial resources necessary to operate the eligible facility successfully;

(5) the financing and security documents contain provisions such that under no circumstances is the municipality obligated directly or indirectly to pay project costs; debt service; or expenses of operation, maintenance and upkeep of the facility except from bond proceeds or from funds received under the financing or security documents, exclusive of funds received thereunder by the municipality for its own use;

(6) the project plans comply with all applicable environmental, zoning, planning, and sanitary laws and regulations of the municipality and of the state of Vermont; and

(7) neither the financing document nor the security document purports to create any debt of the municipality with respect to the eligible facility, other than a special obligation of the municipality under this chapter; and

(8) the proposed financing of the project by the municipality and the proposed operation and use of the eligible facility will preserve or increase the prosperity of the municipality and of the state or enhance or protect the physical environment of the state and will promote the general welfare of citizens of the state;

(9) for a project involving an eligible facility as defined in subsection 212(6)(G) of this chapter, the project has been certified by the transportation board as likely to aid in the retention of existing industrial or agricultural enterprises in the state or in the development and increase of such enterprises, and if such project consists in whole or in part of vehicles, rolling stock or other modes of conveyance, there is reasonable assurance that the same will continue to be based in or operated from the municipality and contribute to the prosperity of the municipality and of the state; and

(10) the findings when adopted by the authority shall be conclusive. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 12, eff. March 27, 1975; 1981, No. 54, § 15, eff. April 28, 1981; 1983, No. 38, § 2; 1993, No. 89, § 3(b), eff. June 15, 1993.)